Wholesaler · Cuxhaven, Germany · Member since 2016 · 23 posts · 11 votes
I'm seller financing vacant land and was wondering, when using the deed of trust loan instrument, if the borrower can build on the property as they see fit (obviously adhering to zoning restrictions) even though they don't hold legal title?
Or do they have to ask the trustee for permission, since the trustee holds the legal title and the borrower only the equitable title.
Why are you not deeding the property ? What state is this in? Some states it’s better to do a traditional note and security instrument vs a contract for deed.
Yes they can build on the property in either situation but you will have to foreclose in a conventional manner most likely.
So having name one deed vs transferring it may be more of a pain.